Question

What are the expected long-term consequences of price controls on R&D investments, quality of life, mortality...

What are the expected long-term consequences of price controls on R&D investments, quality of life, mortality rates, and the cost of medical care?

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Answer #1

Lowered profits would decrease spending or investment on R&D, quality of life would decrease because there are less innovative drugs being developed and therapeutic drugs with low markups would no longer be produced, and mortality may go up because of the future loss of lifesaving drugs. Fewer breakthrough drugs would be developed and the cost of medical care would rise because there would not be new pharmaceuticals to substitute expensive medical procedures.

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